Essay about Waltham Motors

Company Background:
Waltham Motors Division is a wholly owned subsidiary of Marco Corporation. The company manufactures electric motors of a single design which are usually purchased by household appliance manufacturers. The company was later acquired in 2003 by Marco Corporation. Prior to the acquisition, it was a family business.

Problem: Sharon Michaels, who happened to be appointed as division controller for the company was concerned about the financial report of May, 2004, given to her by the plant accountant. The report indicated huge variance discrepancies between the budgeted profit ($91,200) and the actual outcome…show more content…

According to him, actual direct labor had been $8.20 per hour due to increase in medical benefits since January. He also stated that Actual material prices have been 5% less than expected. Based on such information, I calculated the actual costs per unit, taking into consideration the differences it had on direct material and direct labor. However, it is important to note that the fixed costs stay the same. The variable and fixed costs per unit for the actual costs column are as follows:
Variable Cost per Unit Fixed Cost per Unit Direct Material $5.70 Supervision $ 3.20 Direct Labor $16.40 Rent $ 1.11 Indirect Labor $3.17 Depreciation $ 3.33 Idle Time $1.01 Other $ 0.58 Cheap Time $0.71 Selling & Admin $ 6.22
Miscellaneous Supplies $0.29
Shipping Cost $2.00 Total Variable Costs $29.28 per unit Total Fixed Costs $14.44 Based on the per unit cost calculations for what actually occurred, the total variable per unit costs was $29.28, and the fixed per unit costs was $14.44. This shows that the total expected per unit costs for the actual cost was $43.72. This however, is different from the initial calculation I had. I will explain that in the subsequent questions.

Waltham Motors Division
Sharon Michaels, the division controller, is concerned regarding the performance at Waltham Motors Division for the month of May. The company lost a major customer contact during this time, and she needs the performance report analyzed. Sharon Michaels must report the information to the corporate headquarters of Marco Corporation. Waltham Motors is a subsidiary of Marco Corporation and was acquired in late 2003. This analysis is for the month of May 2004.
Accounting…

SWOT analysis of General Motors
This is a General Motors Company SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.
Company background
General Motors Company (GM) is a corporate that designs, builds and sells cars and trucks. Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Main Competitors General Motors Company Automotive Worldwide U.S. Daniel Akerson $ 152.3 billion (2012) $ 4.9 billion (2012) 202…

Waltham Motors Case Individual Analysis
Measurement I
Kofi Opoku
October 11, 2010
Professor Brett Hunkins
Company Background:
Waltham Motors Division is a wholly owned subsidiary of Marco Corporation. The company manufactures electric motors of a single design which are usually purchased by household appliance manufacturers. The company was later acquired in 2003 by Marco Corporation. Prior to the acquisition, it was a family business.
Problem: Sharon Michaels, who happened to be appointed…

1. Using budget data, how many motors would have to be sold for Waltham Motors Division to break even?
Budgeted CM / Budgeted units sold
= $351,200 / 18,000
= $19.51 per unit
Budgeted FC / 19.51
= 260,000 / 19.51
= 13,326 units
2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production…

Managerial Accounting Case ‘Waltham Motors Division’
Answer 1: Breakeven point
If Waltham Motors Division sells 13,326 units, it will breakeven. But why Waltham incurred net losses when it sold more than 13,326 units in May? The unfavorable cost variances (see answer 2 and 3) and Waltham’s high operating leverage were major reasons for its financial problems. Waltham’s operating leverage is 3.85 times, which indicates that the operating income is very sensitive to changes in sales.
Answer…

Resources Manager
Training Specialist
Benefits Specialist
Salary Specialist
Safety Specialist
Staffing Specialist
Development Specialist
Employee Relations Specialist
Figure 1: General HR Organizational Chart
Previously, the HR unit for Motors and More only consisted of a HR Director. Some hiring will have to be done in order to have a full HR staff. Due to the size of the company, several of the HR units will have to be combined. The job of the HR director will remain the same. The…

Question 1: Using budget data, how many motors would have to be sold for Waltham Motors Division to breakeven?
In order to calculate the breakeven point, we use the following equation and budget data:
Breakeven Sales*Unit Price-Unit Variable Cost= Fixed Costs
Breakeven=Fixed CostsUnitary Price-Unitary Variable Cost
Breakeven point=260,000864000/18000-512800/18000=13,226 units
Q2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable…

Andrew Martin
COMM 336
Informative Paper
4/4/2013
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